In other words, every year I could do another house at 3.5% (FHA "house hacking" style), but the cash flow will be less (somewhat substantially so) on these rentals in which I've only paid down 3.5% of the mortgage.

I am working in a Development called Il Lago and would like to ask you guys how do you feel about offshore investments, because I'm planning on launching a Google Ad words Campaign. 

Rent Control LA TIMES COSTA HAWKINS and 1506Rent control lead to blight in the innercities of South Central LA Get word out to home owners, realtors, property managaers, plumbers, contractors, housing industry, people who like strong local economies, people who own houses or duplexes to vote no on rent control

As a checkbook holder and trustee, you have the control to fund these investments and the decision making authority to structure deals to your liking (shorter term, higher interest, etc.)I'm sure it's just how you chose to word it, but I will caution you anyway that "becoming a lender" sounds a bit like a business whereas what you are doing instead is directing your 401k to make passive investments.The key needs here are a way to contact and negotiate with those who may need loans and some appropriate loan paperwork to outline the terms and secure your 401k's interest in the investment.

Thank you for your words of wisdom.We are looking into our area and speaking with others that have experience within our market.

Does what you are hearing evoke the word "scam"?

If you make an offer subject to the inspection of the interior and the approval, then barring any other wording in the contract stating otherwise, you would have an out.

In other words, if I can't find a small bank to work with me in my area, should I start calling banks in different states?

@Ritch Bonisa thanks for the kind words. 

@Aaron Christen - Thanks for the positive words on Rock Springs, and I do hope an uptick in oilfield company hiring will improve my rental's occupancy rates and possibly appreciation.